New Federal and Provincial Excise Tax Increase 2024
The Canadian federal government implemented an excise tax on October 1st, 2022, requiring all e-liquid bottles and pre-filled pods sold in Canada to bear excise-duty stamps, similar to those on tobacco and cannabis products.
In addition to federal excise duties, starting July 1st, 2024, Ontario, Quebec, Northwest Territories, and Nunavut will also levy provincial excise duties on vaping products. Beginning January 1st, 2025, Alberta, Manitoba, New Brunswick, Prince Edward Island, and Yukon will follow suit.
HOW MUCH WILL IT INCREASE?
The 2024 Federal Budget included a 12% increase to the general duty rate.
The provincial excise duty rates mirror the federal rate, effectively doubling the tax in participating provinces:
- $1.20 per 2mL on the first 10mL of e-liquid or equivalent
- $1.20 per 10mL beyond the initial 10mL
This effectively adds $7.84 (Federally) + $7.84 (Provincially) in tax on a 30mL bottle, $11.20 (Federally) + $11.20 (Provincially) on a 60mL bottle, $17.92 (Federally) + $17.92 (Provincially) on a 120mL bottle.
Manufacturers must affix provincial stamps to products from July 1st, 2024, onwards. This regulation affects consumers in Manitoba, Ontario, Quebec, Northwest Territories, and Nunavut, exempting those who purchase for shipment outside these provinces.
The excise duties apply to all vapeable products including disposable vapes, pre-filled pods (e.g. STLTH, Flavour Beast, Z Pods etc.), but exclude hardware like refillable devices, coils etc.
Imports must also comply; products entering Canada without proper duty stamps risk confiscation by Customs.
| Bottle Size | Federal Excise Tax Increase Per Bottle | Provincial Excise Tax Per Bottle |
Total Excise Tax Per Bottle |
| 30mL | + $0.84 | + $7.84 |
$15.68 |
| 60mL | + $1.20 | + $11.20 | $22.40 |
| 120mL | + $1.92 | + $17.92 | $35.84 |
HOW IS IN2VAPES HELPING YOU DURING THIS TIME?
In2Vapes remains committed to helping our customers through this time. Staying on budget and finding the best deals remains a key issue for many during these difficult times.
In2Vapes has purchased and committed large amounts of inventory to prepare for this increase. Due to stipulations in the legal framework, we can sell Federal-only stamped products into September/October 2024, effectively prolonging the provincial increases. As we have forecasted our sales numbers into this timeframe, we remain committed to keeping prices as low as possible, for as long as possible.
Our daily bundle deals and programs will remain in effect, though adjusted in the percentages and amounts rebated to reflected in the higher costs associated with these tax increase. Rest assured, these prices and discounts remain some of the most competitive in the industry. Bundled with the customer service and selection you as our customers have grown to appreciate, we want to remain your source for vaping products in Canada.
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